Nasdaq closes at a record as oil slips and bond yields climb
The Nasdaq closed at a record high Monday, up 1.1%, as Nvidia and Microsoft led tech stocks higher. The S&P 500 rose 0.7% and ended about 0.3% below its summer record, while the 10-year Treasury yield rose to 5.31%. That rate drives what families pay for mortgages and car loans.
The Nasdaq composite closed at a record high on Monday as tech stocks led Wall Street higher. The Nasdaq rose 286.45 points, or 1.1%, to 27,477.31, the Associated Press reported. Its last record close was on Sept. 22, Reuters said.
The S&P 500 rose 51.23 points, or 0.7%, to 7,773.95. That left it about 0.3% below its record close from Aug. 13. The Dow Jones Industrial Average added 90.94 points, or 0.2%, to 51,267.90. The Russell 2000 index of smaller companies rose 0.5%.
Big tech did much of the lifting. Nvidia climbed 2.1% to its own record close, which pushed its market value to $5.76 trillion, Reuters said. Microsoft added 1.5%. Buyout news helped too. Software maker PTC jumped 33% after France's Schneider Electric agreed to buy it for $22.6 billion in cash. Trucking broker RXO jumped more than 22% after C.H. Robinson agreed to buy it for $5.8 billion.
Oil gave back some ground. Brent crude, the global benchmark, swung between $100 and $103 a barrel before it settled a little over $100, the AP said. Reuters said rising Middle East exports and a Group of Seven pledge to boost supplies pulled prices down. On Friday, G7 leaders agreed to release 100 million barrels of oil and diesel from emergency stocks over four months, the BBC reported.
The bond market stayed tense. The 10-year Treasury yield rose to 5.31%, the AP said. That rate feeds the cost of mortgages, car loans and business borrowing. A survey from the Institute for Supply Management also showed that the prices service firms pay jumped to 74.0 in September from 72.6. Reuters said that points to higher inflation ahead.
Some background: Friday's jobs report showed employers added just 29,000 jobs in September, CNBC reported. That cooled bets on a Fed rate hike this month. Traders now see a 24% chance of an October hike, down from 70% a week ago, according to CME's FedWatch tool, Reuters said.
Next up are minutes from the Fed's September meeting, due Wednesday, Sharecast noted. Big U.S. banks start reporting third-quarter results next week. Analysts expect S&P 500 profits to jump more than 30% from a year ago, Reuters said, citing LSEG data.
What we know: The Nasdaq set a record, the S&P 500 is near one, and the 10-year yield is 5.31%.
What we don't: Whether the Fed minutes point toward another hike, and how long oil stays near $100.
Where outlets agree The AP and Reuters both report that the Nasdaq closed at a record 27,477.31 and the S&P 500 rose to 7,773.95, about 0.3% below its record.
Where they differ The AP credited a pair of buyout deals for lifting the market, while Reuters pointed mainly to gains in Nvidia and Microsoft and a dip in oil prices.